The Dow Chemical Company announced last Tuesday that it has signed a definitive agreement under which ANGUS Chemical Company will be sold to Golden Gate Capital for $1.215 billion. The transaction is expected to close during the first quarter of 2015, subject to completion of customary regulatory filings.
Dow had previously announced its intent to divest this business on Oct. 2, 2014. The divestiture aligns to Dows efforts to achieve its identified target of $4.5 billion to $6 billion in proceeds from shedding non-strategic assets and businesses by year-end 2015. To date, Dow has achieved $2.5 billion in proceeds designed to remunerate shareholders, reduce debt, and fund growth.
With todays announcement, Dow continues to demonstrate its rigorous focus on selectively shifting our portfolio away from assets that are no longer a strategic fit and optimizing their value, said Andrew N. Liveris, Dows chairman and chief executive officer. We remain committed to streamlining our portfolio aligned to our market-driven, integrated strategy and will continue to pursue additional portfolio actions in our relentless pursuit of rewarding shareholders.
The divestiture of ANGUS includes the business headquarters and R&D facility in Buffalo Grove, IL; manufacturing facilities located in Sterlington, LA, and Ibbenbueren, Germany; a packaging facility in Niagara Falls, NY; as well as the associated business, inventory, customer contracts, process technology, business know-how and certain intellectual property.
ANGUS is the world's only chemical company dedicated to the manufacture and distribution of nitroalkanes and their derivatives, which are extremely versatile additives and intermediates that help customers to enhance their products performance. Industries successfully using ANGUS products include paints and coatings, life sciences and biopharma, metalworking, personal care, pharmaceuticals, water treatment, oil & gas and many others.
Approximately 290 employee positions globally are expected to transition employment status as ANGUS moves to being owned by Golden Gate Capital as part of the transaction. Under terms of the purchase agreement, ANGUS will continue to honor customer, licensing and supplier contracts and related agreements.
